Australian businesses set to boost AI investment by 67% this year

BSI, a global standards and business improvement company, has released a study showing that Australian businesses are significantly increasing their spending on artificial intelligence (AI) to improve operations, drive growth, and remain competitive on the world stage.

According to BSI's International AI Maturity Model, AI investment among Australian businesses is set to rise by 67% this year, placing Australia as the second highest market globally in terms of boosting AI capabilities.

The study, which surveyed 932 business leaders globally, reveals that three-quarters of Australian business leaders (75%) believe their organisations will be at a competitive disadvantage if they do not invest in AI. Only 11% of those surveyed felt their businesses were not investing enough in AI tools, compared to a global average of 19%.

In terms of training, 60% of Australian business leaders consider it crucial to provide training to ensure AI's safe, ethical, and effective use. Furthermore, 86% felt that training teams to utilise AI tools is vital to protect jobs. Despite these strong sentiments, just under a third (31%) of Australian business leaders reported significant awareness of their company offering AI-related training, a lower figure compared to India (49%) and China (47%).

The BSI model places Australia at a 3.1 maturity score for AI readiness, compared to India, which tops the list with a score of 4.6. The metrics in the model include attitudes and actions regarding investment, training, communication, and safety. The United Kingdom and Japan were identified as less mature in AI adoption, potentially due to policy directions or media narratives focusing on the risks of AI rather than its opportunities.

Engagement with AI is notably high in Australia, with 86% of business leaders reporting that their organisations encourage AI use and 88% feeling confident their businesses are benefiting from AI. The importance of informing employees about how AI is used within organisations is also highlighted, with 94% of leaders noting its importance.

BSI Australia Managing Director, Charlene Loo, commented on the findings by saying, "BSI's Global AI Maturity Model paints a positive but nuanced picture of a world excited about AI's potential and its promise as a force for good. While Australian businesses are increasing their investment in AI, we continue to see some challenges relating to a lack of skilled talent. Investment in standards, training, and assurance is key as AI becomes integral to the future of life and work."

CEO of BSI, Susan Taylor Martin, added, "While the Model shows diverging paths thus far on AI, its mass adoption and integration into work and life is a marathon, not a sprint. Success is not about being first but about building trust. BSI is committed to playing a role in shaping the guardrails for the safe and ethical use of AI, which will help businesses in Australia embrace AI to build a positive future for all."

The study also highlights the importance of an ethical approach to AI, with 88% of Australian business leaders recognising this. However, only 30% of those surveyed were aware of significant moves by their businesses to implement policies and processes ensuring the safe use of AI. In terms of practical applications, 53% of Australian leaders see enhancing productivity and efficiency as key AI opportunities, including supply chain management (49%). AI is also expected to aid in cybersecurity (46%) and the reporting of sustainability goals (38%).

Half of Australian businesses now have an AI strategy, a higher proportion than the global average of 44%. However, challenges remain, particularly concerning the shortage of skilled talent and the need for comprehensive training programmes. The BSI report underscores the importance of long-term strategic thinking, regulatory collaboration, and taking decisive actions to ensure AI can be trusted and harnessed effectively.